Today’s weakness in the USD versus the YEN can be viewed as having violated a support line that originated at the Sept 2012 secondary low at 77.13, and which cuts across the price axis today in the vicinity of 120.50.
Inability of USD/YEN to claw its way back above 120.50 increases the likelihood of downside continuation that challenges the prior pullback lows at 118.05/10, and, more importantly, at the Aug 2015 spike low of 116.15.
That would complete a 12-13 month top formation in the aftermath of a four-year bull run, and likely will have major implications for other global financial markets moving forward.
Originally published on MPTrader.com by Mike Paulenoff.
